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(ii) the Trustee Savings Banks Acts 1989 and 2001, or

(i) the Credit Union Act 1997,

(2)(a) Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes—

(aa) Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.

“foreign deposit interest” means interest arising in a foreign territory which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if—

(a) paragraphs (c), (d) and (g) of the definition of ‘relevant deposit’ in section 256(1) were deleted, and

(b) there were included in the definition of “relevant deposit taker” in section 256(1), bodies—

“specified interest” means interest arising in a Member State of the European Communities other than the State which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if—

(a) in the definition of “relevant deposit” in section 256(1)—

(b) there were included in the definition of “relevant deposit taker” in section 256(1) bodies established in accordance with the law of any Member State of the European Communities other than the State which corresponds to—

(i)specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in the definition of “appropriate tax” in section 256(1), or

(ii)foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in the definition of “appropriate tax” in section 256(1).

(ii) the Trustee Savings Banks Acts 1989 and 2001, or